Molalla is a city in Clackamas County, Oregon, which, like the river it was named after, took its name from the Molala Native American tribe. The Molalla post office was first established near Liberal, Oregon, in 1850 but was closed a year later, then re-opened again in 1868. This second attempt lasted until 1874 when it was closed a second time. The Molalla post office was resurrected again in 1876, at Molalla's present location and has remained there ever since. The city got its first stoplight in 2005, a result of increased business activity and the resulting traffic. Today Molalla is surrounded by agricultural farms, tree farms which practice selective and sustainable logging, and numerous rock quarries. These have traditionally been the sources of its economy but the city is now diversifying into commercial industries too.